The SEC adopted whistleblower rules (the “rules”) that will reward individuals who provide the agency with high-quality tips that lead to successful enforcement actions.
The new SEC whistleblower program implements a rule required by Section 922 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The purpose of the rules is to reward individuals who act early to expose violations and who provide significant evidence that helps the SEC bring successful cases.
The proposed rules require a whistleblower to voluntarily provide the SEC with original information if such person wants to be considered for an award. Furthermore, the information must lead to the successful enforcement by the SEC of a federal court or administrative action in which the SEC obtains monetary sanctions totaling more than $1 million.
The SEC’s rules will be effective 60 days after their publication in the Federal Register.
Click here to access the release adopting the rule.